How to Become a Hedge Fund Manager

How to Become a Hedge Fund Manager

Are you among the people who are dreaming of a challenging but rewarding career and who ask themselves how to become a hedge fund manager? If you are hoping to land a job as a hedge fund manager, there are a few things you need to know before even applying for the opening.

How to become hedge fund manager is not such a simple question, as certain skills, qualities and abilities are required if you are to succeed on your path to a fulfilling career. It’s not enough to be familiarized with the financial market and to have worked a few years in a bank. You need much more than that because this is a position of responsibility both towards your co-workers and towards your clients.

So, how do you become a hedge fund manager? Well, we’ve prepared a list of steps to take in order to achieve the necessary qualifications and experience that will land you the much-desired job of hedge fund manager. To get to the place you want to be, you need to stay focused and be willing to invest your time and energy into the goal of becoming a hedge fund manager.

Hedge funds Financial concept

Know the Theory

If you got to the point of wondering how do I become a hedge fund manager, that means you are willing to take all the necessary steps to reach this goal. However, do you really know what you’re supposed to do? Are you sure hedge funding is the right career path for you? Do you think you have the skills necessary for succeeding?

To answer all these questions, you need to learn the theory before you get to action. Firstly, know that a lot of hedge funds may get 100 resumes per week from both students and experienced professionals who are looking for a hedge funding job. The competition is harsh and getting noticed from a crowd of people requires discipline and passion.

If you’re not ready to dedicate yourself fully to achieving your goal, then you’re not ready to fill this position, and you probably shouldn’t even become a hedge fund manager. On the other hand, if you are knowledgeable, constantly curious about the financial world and a good networker, your chances are greatly increased!

After you’ve decided that this is truly the right path for you, get ready to dedicate yourself to learning as much as possible. Only after you master the theory should you head for that job application form!

Do It for the Right Reason

Landing that dream job of hedge fund manager may take a few years of your life, so if you are going to spend them pursuing this goal, at least do it for the right reasons! If you think that in a matter of months you will get a cozy job in a fancy office building, think again. Hedge funding professionals train for years as interns and entry-level assistants before they can even dream of a managing position.

Becoming a hedge fund manager is a long and challenging road, and if your only motivation is a fat bank account, you probably won’t feel fulfilled or happy to spend nights doing research and analyzing reports. Make sure you know what you get yourself into and also ask yourself if it’s not an accounting or private equity job that would better fit you.

Only after you are 100 percent certain that your reasons are genuine, and you are willing to put in all the long hours, you will be ready to actively pursue the hedge fund manager position. How to become a hedge fund manager is a question that you should ask only when you are sure this is what you want to do!

Start Studying Hedge Funding

How to become a hedge fund manager? This might seem obvious, but a great starting point is to hit the books. Start studying hedge funding and gain as much knowledge and business insight as you can. This doesn’t necessarily mean you should drop everything and start a new Degree tomorrow; it only means you should start studying.

There are a lot of free online courses and resources to get yourself familiar with the specific terms and basic notions. You can also start by dedicating half an hour every day to reading the most important hedge funding books available. This way you can start building the necessary theoretical notions that will come in handy later on.

If you don’t know where to start from, check out this extensive list of must-read books for any aspiring hedge fund manager! The question of how to become a hedge fund manager will be simple to answer after you get to know the ropes of this industry.

Make sure you are familiar with the biggest players in the hedge funding market, the basic notions and terms, and also the history of hedge funding. To eventually become hedge fund manager, you need self-discipline and motivation, which means that this long learning process will help you further develop these skills.

Employ the Correct Strategy

After you have gained the basic knowledge of how investments work and who the key players are, you could think about entering the field. The thing to know beforehand is that no one will directly hire you as hedge fund manager. No matter how good you think you are, in this job you have to start from the bottom.

Think about it as a learning curve and be ready to become an information-absorbing sponge once you get to mingle with the professionals. First, you should try to apply for a part-time job with a hedge funding company while still keeping your day job.

The good thing about internships and part-time openings is that they might lead the way to a full-time job if you prove you are good enough and stay motivated. If you manage to get a part-time job at a hedge funding company, you should use this opportunity to learn as much as possible and also meet experienced people that might help you along the way.  How to become a hedge fund manager will become an easier and less challenging task if you employ the right strategy!

Networking is a Must

You probably already know that, but major deals are more likely to be closed after the businessmen have enjoyed a meal and a light chat.  You are not a hedge fund manager yet, but even as an entry-level assistant you should take full advantage of the opportunity of networking. How to become a hedge fund manager has a lot to do with meeting and getting to know people.

Share your knowledge with your colleagues and senior assistants and stay hungry for learning. Don’t miss any opportunity to socialize and get to know the people who are actively changing the hedge funding business. Ask questions and listen carefully to the answers you get because the chances are that your co-workers are more experienced than you.

When you are offered advice, follow it and avoid the mistakes others have made in order to shorten your path to success. Networking in the financial business is not a commodity, but a vital necessity that pays off in the long run! How to become a hedge fund manager has a lot to do with great people skills and networking abilities.

Find a Mentor and Stick to Them

Since we have talked about networking, another vital element that answers the main question how to be a fund manager is finding a mentor. Mentoring is not such a common practice nowadays, being regarded as too archaic for our times. This modern opinion is wrong! A mentor will teach you how to become a hedge fund manager, while being a source of inspiration and support.

You truly need a successful mentor who is willing to give you advice and support you throughout your career. That is why you should start looking for him or her as soon as you get inside a hedge funding firm, no matter how small!

It might seem intimidating to approach a more experienced professional, but keep in mind that most of the successful people working in finance are willing and sometimes even happy to share their knowledge. You should show your future mentor that you are passionate, driven and hungry to learn, and also manifest your gratitude for the effort they make for you.

Once you find the right person, stick to them and treasure all the information they are generously sharing with you. When you fulfill your goal and land that dream hedge funding manager job, they should be the first person you send a thank you note to!

Go for That Internship! And the Next!

If you are asking yourself how to become a hedge fund manager, you should know that internships are a key part of this career path.

As we have already mentioned, a great way to get started in the right direction is to go for a part-time position or even an internship. Internships at reputed companies are not only a great occasion to learn the trade, but also a possibility of landing a full-time job.

Even if they are not well-paid, internships are a key step to go through before landing that dream hedge fund manager job. If you decide to go for an internship, do it with passion and be thankful for the opportunity to learn and develop. Once you finish your first internship, go for the next one! They are greatly appreciated on any resume.

To know how to be a hedge fund manager, you need to discover how to be a great intern and a dedicated hedge fund assistant first!

Find Your Niche

There are a variety of different hedge funding firms, and they all deal with a very specific sector. To become a hedge fund manager, you should become highly specialized in the niche that you are most passionate about.

How to become a hedge fund manager is too vague a question, you should ask yourself what type of hedge funding job would you like and what kind of company would you want to work for? Find the specific sector where you can make the best of your abilities, while remaining excited about the daily challenges you have to face.

Discover your particular place in the industry and then research everything you can about that specific sector until you have covered all the important information. Only after you have done this, you are ready to start looking for job openings with the firms you appreciate.

How to Get Hired?

Your first real, full-time job in a hedge fund will not be very easy to land, so get ready to apply alternative tactics. It is important to discover where you fit in the industry, so you know in which direction to go in your search for that hedge funding job that will pave your way to a manager position.

All hedge funding firms are unique, and their activity is very specific. That’s why there are no clearly stated rules you should follow to get hired, but still, there are some things to consider.

A lot of hedge funding jobs are unadvertised so how can you find and apply for them? Well, a good idea would be to cold-call the firms you are interested in working for and simply inquire about their openings. It is not guaranteed that this strategy will work, but if you are lucky, you might just reach someone who is searching for a new team member.

Be bold, but not arrogant! Present your qualities but don’t brag! Introduce yourself and prove that you are passionate about working for this particular hedge funding firm and your chances of getting the job will greatly increase.

Useful Resources for Hedge Funding Professionals

Once you get started on the path towards becoming a hedge fund manager, you need determination and creativity to get yourself noticed and to climb the professional ladder. There are plenty of online resources that can help you meet your goal by helping you connect with other professionals.

As we have already mentioned, you should be ready to dedicate at least three years to gaining experience in the hedge fund industry before you can aim for a management position. Spend these years by learning as much as you can, and meeting more experienced professionals who will offer you vital advice.

Before being recruited, you should improve your chances of landing the job by following a few steps. The process of how to become a hedge fund manager will be easier if you start by using these techniques.

  • Cold-call to find out about unadvertised openings
  • Get in touch with professionals who graduated from the same institution you studied at
  • Become a member of the HFG (Hedge Fund Group)
  • Attend conferences and events dedicated to hedge funding to meet professionals
  • Try to earn one of the three main designations (CFA, CHA or CAIA)

All these factors will increase your chances of getting the job in the first place, and then getting promoted. Be ready to work hard, prove your value and learn from everyone around you. Stay humble, focused and motivated and you will certainly achieve your goal.

How to become a hedge fund manager is a problem of motivation and passion, if you really want to follow this career there’s nothing that can stop you. On the other hand, if you’re not sure hedge funding is for you, you probably shouldn’t waste that much time training for a job you might not like. Remember to follow our advice and stay focused on your main goal of becoming a hedge fund manager and you will surely succeed!

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